Google launches lawsuit against crypto scammers over fake app scheme
Google has launched a legal battle against a ring of individuals accused of orchestrating an extensive cryptocurrency scam that impacted a staggering 100,000 users across the globe.
In the lawsuit unveiled today, Google is taking aim at the alleged fraudulent dissemination of investment and cryptocurrency exchange applications via its Play Store platform.
Positioning itself as a pioneer among tech companies in combating crypto scams, Google’s lawsuit aims to set a legal precedent in safeguarding its user base.
The lawsuit alleges that the defendants hoodwinked Google by providing false information regarding their identity, location, and the nature of the applications they uploaded to the Play Store.
Employing the Racketeer Influenced and Corrupt Organizations (RICO) law and breach of contract claims, Google targets the scammers who reportedly published a minimum of 87 counterfeit apps, luring unsuspecting users into dubious investment schemes.
Halimah DeLaine Prado, Google’s general counsel, emphasized the significance of this initiative, stating, “This is a unique opportunity for us to use our resources to actually combat bad actors,” during a discussion with CNBC Crypto World.
With crypto fraud losses in the U.S. surpassing $1 billion in 2023, Google’s lawsuit not only aims to protect its users but also serves as a deterrent against future fraudulent activities.
The accused individuals, identified as Yunfeng Sun and Hongnam Cheung, allegedly employed various tactics to target victims, including text messages via Google Voice, promotional videos on YouTube, and affiliate marketing strategies dating back to at least 2019.
Apps like TionRT, masquerading as legitimate crypto exchanges, were meticulously designed to deceive users, even permitting small initial withdrawals to gain their trust.
However, users soon found themselves unable to access their funds, often misled by demands for additional payments or minimum balance withdrawal prerequisites.
Google highlights its efforts to combat these fraudulent activities, highlighting that it promptly removed identified scam apps. The perpetrators persisted in creating new ones to evade detection.
Google asserts that it has incurred damages exceeding $75,000 due to the resources expended on investigations and implementing safety measures against these breaches.
The tech giant seeks a permanent injunction to prevent the accused and their associates from accessing Google services and establishing new accounts.